Senior Citizens Real Estate Tax Deferral Program Elizabeth Lough

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Senior Citizens Real Estate Tax Deferral
Program Elizabeth Lough
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Objectives

• Learn about the benefits of the program
• Become familiar with the qualifications of the
  program
• Develop an understanding of what is considered
  income
• Understand what type of property is considered a
  qualifying property
• How to apply for the program

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Benefits

• Provides tax relief
• Extremely valuable for those who are house rich
  and cash poor
• Allows senior citizens to defer all or part of
  their property tax and assessment payments on
  their principal residences
• A 6 simple interest rate is charged for each
  year
• The maximum amount that can be deferred,
  including interest and lien fees, is 80 of the
  taxpayers equity interest in the property

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Qualifications

• The taxpayer must be 65 years old by June 1st of
  the year that the application for deferral is
  being filed
• Have a total household income of no more than
  50,000 (for the year 2008)
• Have owned and occupied the property or other
  qualifying property for at least the last 3 years

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Qualifications (continued)

• Have no delinquent property taxes or special
  assessments on the property
• Have adequate insurance against fire or casualty
  loss
• Have written approval from the spouse, if filing
  jointly, or trustee if the property is held in
  qualifying trust, to participate in the program

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Household Income

• Social Security Income (including Medicare
  deductions)
• Supplemental Security Income (SSI)
• Unemployment Compensation
• Interest
• Pension and IRA benefits (federally taxable
  portion only)
• Dividends
• Veterans benefits

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Household Income (continued)

• Civil Service benefits
• Alimony received
• Black Lung benefits
• Business Income
• Capital gains
• Cash Assistance from Human Services and other
  governmental cash public assistance
• Interest received on life insurance policies
• Workers Compensation income

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Household Income (continued)

• Cash winnings from raffles and lotteries
• Damages awarded in a lawsuit for non-physical
  injury or sickness
• Railroad Retirement benefits
• Lump sum Social Security payments
• Annuity benefits
• Wages, salaries and tips
• Rental income
• Monthly insurance benefits

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Qualifying Property

• A homestead that a taxpayer, or taxpayer and
  spouse, have absolute ownership of or that is
  being purchased with complete ownership rights,
  under a recorded instrument of sale
• Is not an income producing property
• Is not subject to a lien for unpaid property
  taxes and/or special assessments
• Can be a single family residence, condominium or
  dwelling unit in a multi-dwelling building that
  is owned and operated as a cooperative

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How to Apply

• Call the Cook County Treasurers Office at
  [phone] for an application
• Go to the Cook County Treasurers website at
  www.cookcountytreasurer.com and download the
  application
• Visit the Cook County Treasurers Office at 118
  North Clark Street, Suite 112, Chicago, Illinois
• Seek the assistance of a Red Tape Cutter

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Application Timeframe

• The application period is from January 1st to
  March 1st of every year
• March 1st is the hard deadline date unless the
  1st of March falls on a weekend day
• The application deadline will not be extended for
  any other reason

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When do Deferred Amounts Have to be Paid?

• Must be repaid within one year of the taxpayers
  death except in the case of a surviving spouse
• When the property is sold, transferred or
  refinanced
• If the taxpayer no longer qualifies for the
  program
• The deferral may be continued by a surviving
  spouse who is at least 55 years of age within six
  months of the taxpayers death

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Thank You!

• Elizabeth Lough
• elizabeth.lough_at_ageoptions.org